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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Capstar Financial Holdings, Inc. (NASDAQ:CSTR).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
The Last 12 Months Of Insider Transactions At Capstar Financial Holdings
In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board Dennis Bottorff bought US$490k worth of shares at a price of US$17.01 per share. That means that an insider was happy to buy shares at above the current price. Their view may have changed since then, but at least it shows they felt optimistic at the time. It’s not at all bad to see insiders buy shares at or above current prices.
Over the last year, we can see that insiders have bought 40.12k shares worth US$679k. In the last twelve months there was more buying than selling by Capstar Financial Holdings insiders. Their average price was about US$16.92. This is nice to see since it implies that insiders might see value around current prices (around US$16.15). The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Capstar Financial Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Have Capstar Financial Holdings Insiders Traded Recently?
Director Louis Green bought just US$1.9k worth of shares in that time. That’s not much at all. Overall, we don’t think these recent trades are particularly informative, one way or the other.
Does Capstar Financial Holdings Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Capstar Financial Holdings insiders own about US$79m worth of shares. That equates to 27% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Capstar Financial Holdings Insider Transactions Indicate?
Our data shows a little more insider buying than selling in the last three months. But the difference isn’t much. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Capstar Financial Holdings and their transactions don’t cause us concern. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Capstar Financial Holdings.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.